Flybe

[IanFarquharson]

Flew with Flybe this week to/ from Hamburg .... both flights on time & nice crew.... I wish Flybe all the best for future

I have just got back from HAM
Super flight on the Dash 8 - 73 pax on board

 

[IanFarquharson]

Connect Airways confirms receipt of EC approval of Flybe acquisition, securing the airline’s long-term future

• European Commission formally approves Connect Airways acquisition of Flybe, Stobart Air and Propius
• Mark Anderson to formally assume role as CEO of the new business

Connect Airways Limited (“Connect Airways”) has received merger control clearance from the European Commission for its acquisition of Flybe Limited (“Flybe”), Propius Holdings Ltd (“Propius”), and its investment in Stobart Air Unlimited Company (“Stobart Air”), securing Flybe’s long-term future and providing more choice for customers across the UK.

With Connect Airways taking over full management control of the business, Mark Anderson (CEO, Connect Airways) and with the leadership teams from Flybe and Stobart Air will now focus on plans to grow Flybe’s regional network, as well as expanding Stobart Air’s successful franchise business.

Connect Airways will offer significant benefits for customers:

• A foundation to secure Flybe’s long-term future, building on the strong financial backing and expertise of Virgin Atlantic, Stobart Group and Cyrus
• More choice for customers through improved connectivity between UK regional airports and Virgin Atlantic’s extensive long-haul network, particularly at London Heathrow and Manchester Airports
• An enhanced customer experience in line with the Virgin brand, which Connect Airways will use in due course
• A leading franchise-flying business, via its investment in Stobart Air’s market-leading proposition

Work is also underway to develop an exciting new brand and customer proposition, which will be announced in due course.



Comment from Lucien Farrell, Chairman, Connect Airways:

“Today is an important day as Connect Airways takes full control of Flybe, bringing the team together with Stobart Air. Under Mark’s leadership, the company has the opportunity to create a world-class offering for customers, combining a highly successful franchise flying business with Europe’s largest regional airline. I wish Mark and the team every success.”



Comment from Shai Weiss, CEO, Virgin Atlantic:

“Mark and his team at Connect Airways have an amazing opportunity ahead of them. At Virgin Atlantic we recognise the value of great partnerships, and the network and connectivity benefits they offer customers. I’m excited to build on the successful partnership Virgin Atlantic has enjoyed with Flybe – and how we can enhance the experience for our mutual customers, once Connect Airways joins the Virgin family and operates under its new brand.”



Comment from Warwick Brady, CEO, Stobart Group:

“We are building a talented team capable of establishing a well-structured, profitable airline. From today, that team are building an exciting future based on a low-cost customer-centric regional connectivity strategy. I am excited for the future of this business.”



Comment from Mark Anderson, CEO, Connect Airways:

“On behalf of Connect Airways, I couldn’t be more excited by the opportunity we have to build a strong platform in the UK and to grow our franchise flying operation in Ireland. Our whole team is focused on redefining the experience for our customers, as we rediscover the excitement and passion of being Europe’s largest regional airline.”

ENDS​

For more information contact:

Maitland / AMO 020 7379 5151

Andy Donald [email protected]

Finlay Donaldson [email protected]



About Connect Airways

Connect Airways is an English limited company the share capital of which is owned 30% by Stobart Aviation Limited, a wholly owned subsidiary of Stobart Group Limited, 30% Virgin Travel Group Limited, the holding company of Virgin Atlantic Airways Limited, and 40% by DLP Holdings S.à.r.l., a Luxembourg company wholly-owned by funds managed by Cyrus Capital Partners LP.

Connect Airways has acquired Flybe and Stobart Air's wet lease operations and aircraft leasing business. The Combined Group is expected to bring benefits to customers, suppliers and employees, providing stability in an extremely tough trading environment.



About Flybe

Flybe is Europe's largest regional airline and flies more UK domestic flights than any other airline: 53% of all UK flights within mainland Britain (excluding London). Flybe currently operates 189 routes serving 12 countries from 71 departure points in the UK and Europe (flown under the Flybe brand including all routes on sale April 2019 – March 2020) and is the largest scheduled airline by air traffic movements at Aberdeen, Belfast City, Birmingham, Cardiff, Doncaster, Sheffield, Exeter, Glasgow, Isle of Man, Jersey, Manchester, Newquay and Southampton airports. Flybe operates a fleet of 76 aircraft – 54 Bombardier Q400, 6 Embraer E195, 11 E175 and 5 ATR 72s and was recognised as the most punctual UK-based airline (8th in Europe) in FlightGlobal’s annual On-Time Performance Awards (Jan ’19) and shared the top spot in the Which? ‘Best and Worst Airlines 2019’ report in the Short Haul Category (Jan ’19).

As well as its scheduled passenger regional airline services, charter and cargo transport services and white-label flying for third party airlines, Flybe’s training academy provides pilot, crew, engineering and other training services in-house and to third parties; and Flybe Aviation Services owns a maintenance, repair and overhaul facility servicing both internal and third party customers.


About Virgin Atlantic

Virgin Atlantic was founded by entrepreneur Sir Richard Branson 35 years ago with innovation and customer service at its core. Today Virgin Atlantic carries 5.4 million customers annually, and was recently voted Britain’s only Global Five Star Airline by APEX two years running in the Official Airline Ratings. Headquartered in London, Virgin Atlantic employs over 10,000 people worldwide and operates a fleet of 46 aircraft serving 27 destinations across four continents. Alongside joint venture partner Delta Air Lines, they operate a leading transatlantic network - offering up to 38 flights per day between the UK and US with onward connections to over 200 US and international cities. In summer 2019 Virgin Atlantic will take delivery of their first Airbus A350-1000 aircraft - helping to transform the fleet into one of the quietest and most fuel efficient in the sky. Virgin Atlantic recently achieved the highest sustainability ranking of any airline globally with an A- Leadership rating in the 2018 Carbon Disclosure Project performance assessment.

On May 15, 2018 Air France-KLM, Delta Air Lines and Virgin Atlantic Limited signed definitive agreements to combine the existing trans-Atlantic joint ventures. This transaction is in the process of regulatory clearance. Upon completion the airlines’ expanded joint venture will become the preferred choice for customers travelling across the Atlantic offering the most comprehensive route network, convenient flight schedules, competitive fares and reciprocal frequent flyer benefits, including the ability to earn and redeem miles across all carriers. Customers will also benefit from the co-location of facilities at key hub airports to improve connectivity and access to each carrier’s airport lounges for premium passengers.

For more information visit: www.virginatlantic.com or www.virginholidays.co.uk or via Facebook, Twitter and Instagram @virginatlantic @virginholidays



About Stobart Group

Stobart Group is listed on the London Stock Exchange under code STOB. It is focused on delivering growth in its Aviation and Energy divisions. Stobart Group also holds a portfolio of infrastructure assets and investments, and aims to add value to this portfolio, selling when appropriate.

Stobart Group’s Aviation Division invests in, develops and operates a number of aviation-related businesses focused on meeting the growing demand for airport capacity and improved customer experience. The Aviation Division comprises London Southend Airport and the Stobart Jet Centre, Stobart Aviation Services, Stobart Air and an aircraft leasing business, Propius. For more information visit: www.stobartgroup.co.uk or via twitter @stobartgroup.



About Cyrus

Cyrus was founded in 1999 and has offices in New York and London, managing over $4.4bn on a global basis in securities and loans issued by corporates and sovereigns. Its client base is predominantly endowments, foundations and family offices with a significant portion of the assets under management being partner and employee capital.

 

[Nethercote2019]

I hope you had time to go to model wonderland while you were in Hamburg.... the model of the airport is every boys dream !

I have just got back from HAM
Super flight on the Dash 8 - 73 pax on board

 

[SRDey]

I have just got back from HAM
Super flight on the Dash 8 - 73 pax on board

Hope you had great time

 

[User1007]

The takeover of Flybe is reported to be conditional on Flybe releasing their slots for Birmingham -Amsterdam and Birmingham -Paris, due to monopoly concerns with Air France/KLM part owning Virgin.

 

[Karl C]

Hi all,

I'm not sure if i read the release correctly, but it sounds like Flybe/Virgin/KLM/Air France will relinquish the equivalent amount of slot pairs to new entrants, should an airline wish to start these routes. They won't be stopping the routes between BHX and CDG, AMS.

Could be wrong though. Too hot to function in Turkey today

All the best

Karl

 

[Coathanger16]

Yes currently Flybe and KLM each operate 5 flights per day to AMS and Flybe and Air France each operate 3 flights per day to CDG. So the 5 and 3 daily slot pairs essentially means half of the slots that Flybe/KLM/Air France currently have. I wonder if all the slots would come from Flybe/Virgin or split between Flybe/Virgin and Air France/KLM, so that we'd still see both carriers on each route.

Which other airline would be interested in serving BHX to CDG or AMS though?

Not sure if the ruling means that the Virgin/Flybe/KLM/Air France group can only operate a maximum of 3 daily flights to CDG and 5 daily flights to AMS, or if it just means that if a competing airline wants them, the group has to relinquish the slots?

 

[IanFarquharson]

Yes currently Flybe and KLM each operate 5 flights per day to AMS and Flybe and Air France each operate 3 flights per day to CDG. So the 5 and 3 daily slot pairs essentially means half of the slots that Flybe/KLM/Air France currently have. I wonder if all the slots would come from Flybe/Virgin or split between Flybe/Virgin and Air France/KLM, so that we'd still see both carriers on each route.

Which other airline would be interested in serving BHX to CDG or AMS though?

Not sure if the ruling means that the Virgin/Flybe/KLM/Air France group can only operate a maximum of 3 daily flights to CDG and 5 daily flights to AMS, or if it just means that if a competing airline wants them, the group has to relinquish the slots?

easyjet expressed an interest in BHX-CDG/AMS a while ago but these were not the 'sort of routes' BHX wanted !

That decision could come back to haunt them !

 

[Ray Finkle]

Details are linked below.

Mergers: Commission approves the acquisition of Flybe by Connect Airways, subject to conditions

The European Commission has approved, under the EU Merger Regulation, the acquisition of UK regional air carrier Flybe by Connect Airways, a consortium by Virgin Atlantic, Stobart Aviation and Cyrus. The decision is conditional on full compliance with commitments offered by Connect Airways.

europa.eu

To address the competition concerns identified by the Commission with regard to the Birmingham - Amsterdam and Birmingham - Paris routes, Connect Airways offered a set of commitments. Connect Airways committed to the release of five daily slot pairs at Amsterdam Schiphol airport and three daily slot pairs at Paris Charles de Gaulle airport. Under the proposed commitments, these slots will be released to competing airlines that want to fly the Birmingham - Amsterdam and Birmingham - Paris routes.

Come on easyjet, you know it makes sense

 

[Brum X]

Details are linked below.

Mergers: Commission approves the acquisition of Flybe by Connect Airways, subject to conditions

The European Commission has approved, under the EU Merger Regulation, the acquisition of UK regional air carrier Flybe by Connect Airways, a consortium by Virgin Atlantic, Stobart Aviation and Cyrus. The decision is conditional on full compliance with commitments offered by Connect Airways.

europa.eu

To address the competition concerns identified by the Commission with regard to the Birmingham - Amsterdam and Birmingham - Paris routes, Connect Airways offered a set of commitments. Connect Airways committed to the release of five daily slot pairs at Amsterdam Schiphol airport and three daily slot pairs at Paris Charles de Gaulle airport. Under the proposed commitments, these slots will be released to competing airlines that want to fly the Birmingham - Amsterdam and Birmingham - Paris routes.

Come on easyjet, you know it makes sense

Easyjet or Vueling

 

[TM3]

I guess the incumbents will only have to give up slots if someone else wants to come in.

It would be difficult for a competitor to come in and make money on that, not sure who would want to take on that frequency. Obtaining AMS slots are likely to be the motivator. Maybe someone would want to serve it as a 5th freedom tag?

Shows that Flybe are in a pretty dominant position at BHX, they are not asking them to give up route at MAN as they face a lot of competition on Euro routes there...

CDG and AMS are going to be key routes when the AF/KLM deal with VS concludes.

 

[Ianbutty]

good news for Flybe and their employees.

But the press release is quite clear. No virgin long haul out of BHX. Never mind.

 

[TM3]

I don't think Virgin are going to start long haul from BHX anytime soon but having a base there is a step in the right direction. It will bring a lot of BHX FFers under Virgin's loyalty programme. I think it makes it more likely that we will get Delta hub connections like at EDI.

Press release just states the obvious about what the combination does - it provides connectivity between long haul and short haul. LHR and MAN are the only places where this is relevant.

 

[Angie88]

Sorry to be a negative but I don’t think this will end well for BHX.

I just don’t see Virgin Atlantic ever starting TATL routes from Birmingham & building brand loyalty to Virgin at the expense of BHX users might just contribute further to the leakage of passengers who want to fly direct to the US.

I just hope the Flybe European slots from BHX are all eventually handed over to another LCC and we can focus on gaining an airline who wants to nurture and grow a TATL market who’s focus is on serving Birmingham from Birmingham.

 

[TM3]

What you are saying doesn't really make sense to me.

Why would an airline, that specialises in TATL, who never had a base at BHX before be less likely to operate TATL flights after having a base at BHX?

Why would the arrival of LCC airlines that have no interest in providing TATL at all improve BHX's chances of getting TATL routes?

Having connections increases the viability of long haul routes. Having a base at an airport already makes it easier to try other routes from there. Having a FFer base makes other flyers more likely to fly with you. Having a good market share in any area helps you get corporate contracts with local businesses.

Not saying it's going to happen, certainly not straight away, but there aren't that many other airlines who are looking to expand in UK TATL so hopefully the airport will shake off the negitivity and take the opportunity to build a good relationship with Virgin when they come.

 

[Angie88]

What you are saying doesn't really make sense to me.

Why would an airline, that specialises in TATL, who never had a base at BHX before be less likely to operate TATL flights after having a base at BHX?

Why would the arrival of LCC airlines that have no interest in providing TATL at all improve BHX's chances of getting TATL routes?

Having connections increases the viability of long haul routes. Having a base at an airport already makes it easier to try other routes from there. Having a FFer base makes other flyers more likely to fly with you. Having a good market share in any area helps you get corporate contracts with local businesses.

Not saying it's going to happen, certainly not straight away, but there aren't that many other airlines who are looking to expand in UK TATL so hopefully the airport will shake off the negitivity and take the opportunity to build a good relationship with Virgin when they come.

Please don’t take me as being negative, I’m not & I’d love it if Virgins intentions were to build a LC network of European connections for the purpose of serving Europe but I simply haven’t seen any statement of that kind. To start with Virgin are not looking to introduce new TATL bases or if you have read that somewhere, can you share it please? They have expressly said they are looking to use the Flybe connections as feeders into their current long haul bases. There is absolutely no indication Virgin will operate long haul routes from Birmingham and based on previous press releases, Birmingham will never be on their radar for that.

The reason I see Virgin Atlantic as a negative influencer on BHX is simply because they see the North Midlands as a catchment area for Manchester or the south Midlands as a catchment for Heathrow. If Virgin promote this ideology at BHX then it entrenches the idea even more that BHX does not need TATL connections as they can already be served by existing bases.

The other reason I believe it would be better to have a different LCC serving BHX’s European destinations is because of the exact reason that any route network would not be solely geared towards feeding a long haul base. As I said before a long haul carrier can then focus on serving TATL from Birmingham for the Birmingham conurbation.

I hope I’m wrong & BHX does build a further relationship with them but Just having a Virgin presence here won’t at all necessarily mean they have any interest in serving us long haul.

 

[nwoody2001]

I'm not even convinced about half of what they have said in their existing press release, so until any of that makes sense, I’m not going to speculate on stuff they have not said.

For their vision of having Flybe feed their long-haul routes, this doesn’t make sense. At LHR, only T2 (which Flybe currently use) and T5 are capable of receiving domestic traffic, Virgin/Delta uses T3. If they want an effective hub operation, spreading this across terminals is not the way to do it. Also, the amount of slots held by Flybe and the amount of slots they will be able to reasonably acquire anytime soon will come nowhere near enough to create a meaningful hub operation.

There is equal splits at MAN, with Flybe using T3 and virgin in T2, although the current building works there could address this to a degree.

There is a lot of grey areas here. I do think situation represents the best chance for BHX to secure Virgin Long-haul if they are interested in the hub approach, but then as said above, that doesn’t really make sense.
There is an equal chance that the £100m puchase of Flybe was nothing more than a purchase of slots at LHR. With a pair of slots going at LHR teaching a record price of £60m/$75m ...the £100m of Flybe for the slots that Flybe have seem like a steal ...even if you then slowly wind down the remaining 98% of the airline! Yes I believe there are contractual limits to the slots but their value will still be significant, valuable and a major investment!

Lots of questions to be answered!

 

[Matt995]

There is an equal chance that the £100m puchase of Flybe was nothing more than a purchase of slots at LHR. With a pair of slots going at LHR teaching a record price of £60m/$75m ...the £100m of Flybe for the slots that Flybe have seem like a steal ...even if you then slowly wind down the remaining 98% of the airline! Yes I believe there are contractual limits to the slots but their value will still be significant, valuable and a major investment!

I think you may have hit the nail on the head here!! I heard early on when Virgin was talking about taking over Flybe, a senior executive of Virgin indicated that is was to do with more slots for the 3rd runway at LHR, Virgin will get extra slots based on the % of slots they all ready own, so the bought Flybe slots could help them expand more long haul flights from LHR when the 3rd runway is built, then they could sell off the Flybe fleet/regional routes/regional slots etc.. or maybe move them onto Stobart to operate independently, thus gaining these new LHR slots at a fraction of the cost by buying Flybe so cheaply!!

 

[Coathanger16]

I think you may have hit the nail on the head here!! I heard early on when Virgin was talking about taking over Flybe, a senior executive of Virgin indicated that is was to do with more slots for the 3rd runway at LHR, Virgin will get extra slots based on the % of slots they all ready own, so the bought Flybe slots could help them expand more long haul flights from LHR when the 3rd runway is built, then they could sell off the Flybe fleet/regional routes/regional slots etc.. or maybe move them onto Stobart to operate independently, thus gaining these new LHR slots at a fraction of the cost by buying Flybe so cheaply!!

If the 3rd runway at LHR does go ahead I doubt Virgin will completely shut down the Flybe/Regional branch of the business. Virgin are supposedly looking to double the number of their flights out of LHR. That amount of growth will need a steady feed of passengers, something their current setup at LHR doesn't offer to a large enough extent. If LHR runway 3 does go ahead, I'd expect the Virgin Flybe to expand to some extent into Europe specifically to target that feeder market.

I do agree with @nwoody2001 though - Virgin have so far been very vague on what their plans are for Flybe. Presumably they were waiting for EC approval so as to avoid showing their hand too early. Hopefully now that the takeover has been approved we'll found out just what they're planning soon.

 

[Jerry]

People need to realise that the slots Flybe have aren't theirs at lhr they are remedy slots and even when they become theirs they are limited in what they can do with them and can't sell them.

I do agree with @nwoody2001 though - Virgin have so far been very vague on what their plans are for Flybe. Presumably they were waiting for EC approval so as to avoid showing their hand too early. Hopefully now that the takeover has been approved we'll found out just what they're planning soon.

Probably because they have 2 other partners that they would need to clear it with first.